Sierra Leone Faces IMF Scrutiny Over Foreign Exchange Outflows

Sierra Leone Faces IMF Scrutiny Over Foreign Exchange Outflows

The International Monetary Fund (IMF) has issued a directive urging the government of Sierra Leone to implement rigorous controls on foreign exchange (FX) spending, warning that the nation’s recent economic progress is increasingly vulnerable to fiscal headwinds.

While the IMF recognized several critical milestones achieved by Sierra Leone in 2025—including robust tax revenue collection, a stabilizing exchange rate, and a domestic primary surplus of 1.3% of GDP in 2025—the fund cautioned that these accomplishments face immediate threats.

According to the latest assessment, rising spending pressures combined with weaker revenue performance in early 2026 and external factors such as ongoing conflicts in the middle east, jeopardize the sustainability of these recent advancements.

To preserve macroeconomic stability and safeguard critical foreign reserves, the IMF stressed that the administration must prioritize stricter oversight of government FX outflows. 

While government officials have yet to disclose specific policy responses to these recommendations, analysts anticipate a shift toward tighter fiscal and monetary measures to address the concerns raised by the fund.

EXCERPT FROM IMF REPORT WITH GOVERNMENT, PUBLISHED ON 10TH JUNE 2026, ON THE Third Review Under the Extended Credit Facility (ECF) Arrangement and an Arrangement under the Resilience and Sustainability Facility (RSF)